FaZe Clan has had a turbulent time recently with a sinking stock price, so today GameSquare has announced they’ve purchased the gaming org, and it will go into effect by Q4 2023.
Faze Holdings went public last year, and since that decision was made, its share price has plummeted. The highest it has ever been is $17.43 on 2 September 2022, and today it sits at a tidy $0.19 per share (according to Google Finance). With this in mind, GameSquare Holdings has decided to acquire the parent company of the FaZe clan, Faze Holdings Inc, in an “all-stock transaction”.
In an all-stock deal, shareholders of the acquiring company receive shares in the merging company instead of cash, meaning FaZe Holdings shareholders will receive 0.13091 shares of GameSquare common stock for their FaZe Holdings shares. Combined, FaZe Clan and GameSquare will have annual revenues of nearly $138 million and a gross margin of 26.3% in 2022, according to the merger agreement.
GameSquare also plans to bring back FaZe Clan’s original founders, as CEO of GameSquare, Justin Kenna says “The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem. We are also thrilled to welcome back the founders of FaZe Clan and their fans, one of the most deeply engaged communities born on the internet” regarding the big acquisition.
Richard “FaZe Banks” Bengtson — who will take over the CEO role after the acquisition goes through —says “I’m confident that with Tommy, Apex and me back in charge of the brand, FaZe Clan will get back to where it was in its peak years,” with “We grew up on the internet and understand this brand better than anyone ever could. We are grateful to have found a partner in GameSquare who sees that value in us and can help execute our vision” regarding their new relationship with GameSquare.
Fans can head to the official FaZe Clan website for more details on their brand.
